A 50% stake in the largest regional mall in the Montreal region has traded hands for over half a billion dollars.
Toronto-based Cadillac Fairview Corp., the real estate arm of the Ontario Teachers' Pension Plan Board, paid $553.21 million to buy back the half-interest in CF Carrefour Laval that it previously sold to partner TD Asset Management, according to data obtained by CoStar.
The move came after TD Asset Management triggered a clause in the deal forcing Cadillac Fairview to either sell or buy the 50% stake, a source close to the deal said. The transaction has occurred nearly five years after TD Asset Managed purchased the stake. A TD spokesperson said via email that the company is "looking into this" when asked for comment about the transaction. Cadillac Fairview officials did not immediately reply to a request to comment.
CoStar News confirmed it via property records.
The deal would be one of the largest of the quarter and confirms a resurgence in interest in Canada's retail investment market. Last month, Primaris REIT acquired Quebec City's largest mall for $325 million.
Cadillac Fairview and TD Asset Management agreed to a deal in December 2019 under which Cadillac Fairview sold a 50% interest in CF Carrefour Laval to clients of TD Asset Management invested primarily in the TD Greystone Real Estate L.P. Fund and TD Greystone Real Estate Fund Inc. At the time, TD Asset Management also negotiated the ability to acquire a 50% ownership interest in CF Sherway Gardens, as part of that transaction.
"The two firms exhibit strong cultural alignment and share the same long-term approach to real estate investing," said a TD spokesperson at the time of the deal.
The almost 1.2 million-square-foot CF Carrefour Laval is located in the suburbs of Montreal and dates back to 1969.
The mall is anchored by Rona, Hudson's Bay and Simons, with 266 total stores and average sales per square foot of $1,175, according to Cadillac Fairview's website. The company calls it the most productive mall in Montreal outside of the downtown core.